Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥93.04B
• Dividend Yield: 0.92%
• Average Volume (3M): 798.56K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.91
• Revenue Growth: 1.89%
• EPS Growth: 16.71%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 54.45
• Shares Outstanding: 29,347,500
• 10 Day Avg. Volume: 1,165,670
• 30 Day Avg. Volume: 798,563
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,517.00
• Price Target Upside: 9.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥4,517.00 ▲(9.50% Upside)

Nippon Hume Corp.'s stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and financial stability. However, challenges in cash flow management and a high P/E ratio weigh on the overall score. The technical analysis indicates bullish momentum, but caution is advised due to overbought signals.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation, headquartered in Japan, is a prominent player in the construction materials sector, specializing in the manufacture and sale of concrete products. The company is known for its high-quality concrete piles, poles, and pipes, which are integral to infrastructure projects. With a strong focus on innovation and sustainability, Nippon Hume Corp. provides products that support the development and maintenance of essential infrastructure across various industries.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the production and sale of concrete-based construction materials. Its key revenue streams include the sale of concrete piles, which are used in foundation work for buildings and other structures, and concrete poles and pipes, which are crucial for utility and infrastructure projects. The company benefits from strong industry demand driven by urban development and infrastructure maintenance. Additionally, Nippon Hume may engage in strategic partnerships with construction firms and government bodies, contributing to consistent demand and long-term contracts that enhance its revenue stability.

Nippon Hume Corp. Financial Statement Overview

Summary

Nippon Hume Corp. demonstrates strong revenue growth and robust financial stability with a low debt-to-equity ratio and high equity ratio. However, cash flow management needs improvement, as indicated by negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.06B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.26B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.60B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	3.04B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.24B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	12.75B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	855.03M	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	14.16B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	42.61B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Positive. The current price of 4125 is above the 20-day moving average (MA) of 3598.45, above the 50-day MA of 3044.44, and above the 200-day MA of 2046.76, indicating a bullish trend. The MACD of 263.88 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	79 Outperform	11.47B	12.30	5.60%	3.98%	-2.90%	-24.21%
5273	76 Outperform	118.56B	13.79	11.49%	1.54%	8.66%	12.34%
6485	76 Outperform	31.13B	10.87	0.00%	3.79%	-1.06%	58.50%
5262	66 Neutral	¥93.04B	29.96		0.92%	1.89%	16.71%
7943	61 Neutral	106.10B	56.45	2.17%	3.97%	1.05%	-76.91%
5337	54 Neutral	24.41B	20.12	0.44%	―	-11.27%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nippon Hume Corp. Corporate Events

Nippon Hume Celebrates 100th Anniversary with Special Dividend

Nippon Hume Corporation announced a commemorative dividend in celebration of its 100th anniversary, reflecting its gratitude towards shareholders. The annual dividend per share for the fiscal year ending March 2026 will be 44 yen, including a 6 yen commemorative dividend, highlighting the company’s commitment to shareholder value.